EUR/USD Current price: 1.0501
- Tepid United States data limited US Dollar’s strength in a risk-averse environment.
- The focus shifts to the Federal Reserve and policymakers hints on monetary policy.
- EUR/USD extends its wait-and-see phase, risk skewed to the downside.
The EUR/USD pair held within familiar levels on Tuesday, stabilizing at around the 1.0500 mark. Market participants adopted a cautious stance amid looming central banks’ announcements and macroeconomic releases from major economies. The US Dollar (USD) started the day with a strong footing, albeit the momentum faded with the release of tepid United States (US) macroeconomic figures.
The Eurozone published the October Trade Balance, which posted a non seasonally adjusted surplus of €6.8 billion, down from the €11.6 billion posted in September. Additionally, the German ZEW Survey showed Economic Sentiment improved in December to 15.7 from 7.4 in the previous month. The figures provided Euro near-term support, but gains were short-lived.
Across the pond, the US released November Retail Sales, which were up 0.7%, better than the 0.5% expected, yet not enough to boost the USD. The country also reported that November Capacity Utilization rose 76.8%, worse than the 77.3% expected, while Industrial Production in the same period fell 0.1%, missing the 0.3% advance anticipated by market analysts.
The focus now shifts to the US Federal Reserve (Fed), expected to trim the benchmark interest rate by 25 basis points (bps) when it announces its decision on monetary policy on Wednesday. Alongside the announcement, officials will release the Summary of Economic Projections (SEP) or dot plot, which will offer fresh perspectives on growth, inflation and employment, and of course, policymakers’ intentions about interest rates.
EUR/USD short-term technical outlook
From a technical point of view, EUR/USD has made no progress. The pair trades around the 1.0500 level after peaking at 1.0533 during European trading hours. In the daily chart, a bearish 20 Simple Moving Average (SMA) keeps providing dynamic resistance at around 1.0520, while the 100 and 200 SMAs gain downward traction far above the shorter one. Technical indicators, in the meantime, turned lower, albeit with limited strength, falling short of anticipating a steeper decline.
In the near term, EUR/USD held within familiar levels, currently battling around a flat 20 SMA. At the same time, a directionless 100 SMA keeps attracting sellers on intraday spikes. Finally, the 200 SMA accelerated its slump well above the shorter ones. Technical indicators turned lower but remain around their midlines, reflecting the absence of clear directional strength yet skewing the risk to the downside.
Support levels: 1.0460 1.0410 1.0375
Resistance levels: 1.0520 1.0570 1.0625
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.